Study: Worcester's parking system in need of an overhaul

A study has found that the city's overall parking system is in need of substantial reform because it does not effectively serve the public's parking needs and is not on a solid financial footing.

A parking program assessment study done for the city reported that the municipal parking system — made up of garages, off-street lots and curbside meters — has run a substantial deficit in two of the last three years.

The study, by consultant John M. Burke, P.E., focused on operations, planning and finances, but did not specifically address whether the rates should be raised.

The red ink has been particularly prevalent in the four municipal parking garages — Federal Plaza, Major Taylor Boulevard, Pearl-Elm and Union Station — which racked up a $705,061 deficit during fiscal 2010 and a $476,420 deficit last fiscal year.

The garages finished with a surplus in fiscal 2011, but that was attributed to one-time money being deposited for a long-term, pre-payment lease of 100 spaces in the Union Station garage.

The only parking garage that has operated in the black during each of the past three years is the Pearl-Elm garage, which finished last fiscal year with a $643,293 surplus.

Meanwhile, the Union Station parking garage has been hemorrhaging red ink in each of the past three years.

Last fiscal year it had a $696,994 deficit, according to the study, while in fiscal 2010 it had a deficit of $801,285 and in fiscal 2011 its deficit was $230,898, even with a one-time long-term, pre-payment lease for 100 parking spaces.

The study also pointed out that the nine municipal surface parking lots have run a very modest surplus, but only three of those lots (McGrath behind the Worcester Public Library, MBTA lot at Washington Square and the Amtrak lot off Shrewsbury Street) have made money in each of the past three years. In fact, the McGrath lot was the biggest moneymaker among the surface parking lots, finishing last fiscal year with a surplus of more than $30,000. In regard to on-street parking meters, the study indicated that component of the city's overall parking system finished with a surplus in only one of the past three years.

In the last fiscal year, the city's parking system finished the year with a $381,380 deficit. The money made by the surface parking lots ($41,280) and curbside meters ($53,759) was more than wiped out by the $476,420 deficit racked up by the parking garages, leaving the overall system with a $381,380 deficit for the year.

The study said parking revenues simply have not been able to keep pace with expenditures, debt obligations and market conditions.

The study reported that Worcester's municipal parking rates are well below those found in other New England cities of similar size, and some of its facilities are well below market rates when compared to competing private parking facilities.

“The city is at a critical crossroads in the evolution of its public parking system and continuing down the current path is not an option,” the study said. “It can no longer afford to passively manage its parking system with deeply subsidized rates and agreements.”

Among the recommendations made by the study:

• Operate the parking system as an enterprise account so all revenues, including those derived from parking meter citations, are directed into that account.

Currently, money from parking meter citations goes into the general fund, which the study said was atypical for most cities and parking authorities. During the last three years, the city has generated $1.8 million in revenue per year from parking meter citations.

• Establish a new parking management structure that would be under the direction of one experienced parking professional. That person would be responsible for the oversight and coordination of all parking planning, operations and finances.

• Place governance of all parking related functions into a single entity and empowering it with full authority over all aspects of on-street metered parking and off-street parking in the garages and lots.

Currently, the governance of all off-street municipal parking lots and the four garages is under the authority of the Off-Street Parking Board. The board is responsible for setting the rates at the parking garages and lots.

Meanwhile, on-street parking rates (curbside meters) are set by the City Council.

City Manager Michael V. O'Brien said his administration is evaluating the recommendations made in the study.

He said proper management of the city's parking system must be a priority because of its importance to plans for economic and business growth.

The manager said his administration intends to complete its evaluation of the study within the next few weeks and then submit a follow-up report to the City Council with its recommendations on how best to meet the city's growing parking needs.

Robert L. Moylan Jr., commissioner of public works and parks, said implementation of the recommendations made in the study represents the most “significant and important steps” that can be taken to reform Worcester's parking system.

“The current parking system is in need of immediate re-structuring and reform to meet the demands of the public and fulfill its role as a complimentary component to economic growth,” he said.